Brokers have the tools and resources to reach the largest possible base of buyers. Key Takeaways Key Points Wholesale merchants, agents, and brokers are essential elements of the wholesale business. Skip to main content. Limited service merchant wholesalers take title to the merchandise and assume the risk involved in an independent operation.
But all wholesalers have the same problems. Learning Objectives Distinguish between the roles of wholesale merchants, agents, and brokers. CC licensed content, Shared previously.
This type of limited function wholesaler will sometimes sell fixtures and furnishings to retailers. Tweets by LechMazur.
Limited function wholesalers cannot always compete with full service wholesalers on selection, but they make up for this disadvantage by offering more retailers more flexibility and by purchasing excess inventory from full service wholesalers at an inexpensive price. He contributes to various websites and holds a Bachelor of Science in biology from Virginia Tech. Since limited function wholesalers occupy a market niche, they are small- and medium-size businesses. Another benefit of using a broker is cost—they might be cheaper in smaller markets, with smaller accounts, or with a limited line of products.
Matthews, Ryan. Other articles you might like: Perreault, Jr.
However, there is a countervailing force at work in that retailing is becoming increasingly fragmented as more and more specialized retailers cater to specialized market niches. Agents, brokers, and commission merchants usually represent the non-competing products of a number of manufacturers to several retailers.
In the wholesale business, wholesale agents and brokers do not take title to the merchandise being marketed, they only bring buyers and sellers together and negotiate the terms of the transaction.
A mediator between a buyer and seller. Jerome, and William D.